We recently published a list of the 11 Most Promising Long-Term Stocks According to Analysts. In this article, we are going to take a look at where Caesars Entertainment, Inc. (NASDAQ:CZR) stands against other promising long-term stocks.
On March 31, Banrion’s Shana Sissel recently appeared on CNBC’s ‘Power Lunch’ to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration’s habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors.
Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles.
Our Methodology
We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Note: All data was sourced on April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A general view of a luxury resort casino, surrounded by a beautiful landscape and illuminated at night.
Caesars Entertainment, Inc. (NASDAQ:CZR)
10-Year Revenue CAGR: 41.01%
Number of Hedge Fund Holders: 79
Average Upside Potential as of April 21: 82.28%
Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company. It also operates and conducts retail and online sports wagering, iGaming, sports betting from retail & online sportsbooks, and other games. In addition, it operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues. It also provides staffing and management services.
In 2024, the company’s Digital segment made a record revenue of $1.2 billion, which was up 20% year-over-year. In Q4 alone, Caesars Digital made $303 million in net revenue. This was fueled by the company’s iGaming sector, which grew by 65% in Q4. Unfavorable sports betting outcomes in October and December impacted these figures, without which the Digital revenue would have been around $370 million.
On February 19, Jefferies analyst David Katz assigned a Buy rating to the stock. Katz is optimistic that the company will rebound by 2025, despite short-term problems in the online business segment and regional gaming portfolio. While the regional portfolio may profit from a more competitive environment and fresh initiatives in specific areas, Caesars Digital is anticipated to grow due to improved iGaming performance and reduced promotional expenses.
JDP Capital Management stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q4 2024 investor letter:
“Caesars Entertainment, Inc. (NASDAQ:CZR) was down 30% in 2024. The position has been a loser so far, dropped about 17% below cost, equivalent to the valuation just 3 months in to COVID when Vegas was all but shut down. I have spoken about CZR at length in past letters so I will spare you from re-reading the pitch.
In 2024 CZR’s post-COVID growth rate started to slow and by 3Q 2024 revenue and EBITDA were essentially flat with YoY. Fears about a consumer spending hangover, combined with rising floating rate interest rates, led to the stock being put the penalty box most of the year.
Looking ahead at 2025 Caesars expects to generate materially more free cash flow as massive multi year capex projects wrapped up in 2024, and more states legalize online gaming. Caesars is also a beneficiary of the transition to online gaming which will drive higher returns on capital and free cash flow in industry with otherwise average returns. …” (Click here to read the full text)
Overall, CZR ranks 4th on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of CZR as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CZR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.